Government launches Rent to Home Buy scheme
The Government is today announcing new measures to help first-time buyers get a foot on the property ladder, while at the same time increasing the supply of homes available.
The Rent to Home Buy scheme will be operated via local housing companies formed by partnerships between councils and the private sector and will use surplus land for new housing developments.
The scheme will help households with earnings below £60,000 per annum save up for a deposit.
It does this by allowing families to rent homes at a discounted rate, for two or three years, after which they have the option to buy 25% or more of the property at any time.
The first four areas to benefit from the new measures are Barking and Dagenham, Newcastle, Nottingham and Manchester.
According to housing minister, Caroline Flint, the downturn in the UK property market has not affected the long-term need to provide more homes and with a growing and ageing population affordability will worsen unless the supply is increased.
The Government is hopeful that the new scheme and other initiatives will help 75,000 first-time buyer households on to the property ladder.
Other Government announcements due today include details of: a £510 million reward scheme for councils that help make land available for development; plans to build up to 75,000 homes across 20 towns and cities; additional money to buy up surplus housing stock from developers.